TORRENT PHARMACEUTICALS LTD Vs. EXCISE & TAXATION COMMISSIONER

JUDGEMENT

(1.) HEARD counsel for the parties.

(2.) THE principal question, that arises for consideration is whether entry No. 14 in Schedule II, framed in exercise of powers under Sections 2 & 3 of the Act, is applicable to the case of the petitioner, who admittedly imports diesel and Furnace oil for running its industry engaged in producing medicines. The argument proceeds that because of the liberal industrial policy, the petitioner was persuaded to start the industry in the State of Himachal Pradesh and keeping in mind entry No. 14, the petitioner verily believed that the liability of the petitioner to pay tax . will not exceed 2%, which was later on reduced to 1% in terms of Notification, dated 13th July, 2011. On that basis, the petitioner paid the tax from time to time while importing the diesel and Furnace oil within the territory of the State of Himachal Pradesh.

(3.) COUNSEL for the petitioner, however, was at pains to persuade us to take the view that the purport of entry No. 14 is applicable and would be attracted in respect of all Industrial Inputs, raw material, including goods, mentioned in Schedule II, except the one referred to in entry 9-b. This argument is another shade of the same grievance made earlier which has been rejected for the reasons noted hitherto. As a matter of fact, the petitioner has placed on record communication, issued under the signature of Excise and Taxation Commissioner dated 20th September, 2011, in which he has opined that the diesel and Furnace oil cannot be categorized as raw material and, as such, cannot be covered under the industrial Inputs being consumables. With regard to the said product, entry tax on diesel and Furnace oil is applicable at the rate of 5%. Relying on the Notification, issued on 22nd September, 2012, Annexure P-8, however, the counsel for the petitioner vehemently argued that the . department, only after realizing the drawback in the existing provision, decided to expressly exclude the product/goods falling under entry No. 1 by amending entry No. 14 in the following words:-